(Solution) - Lance Products balance sheet includes total assets of 320 000 -(2025 Original AI-Free Solution)

Paper Details

Lance Products' balance sheet includes total assets of $320,000 and the following equity account balances at December 31, 2009:
Capital stock:
Common stock, $5 par, 20,000 shares issued and
outstanding ...................... $100,000
Paid-in capital in excess of par .............. 44,000
Total capital stock .................. $144,000
Retained earnings .................. 53,600
Total stockholders? equity ............... $197,600
Lance?s common stock is selling for $24 per share on December 31, 2009.

Required:
1. How much would Lance Products have reported for total assets and retained earnings on December 31, 2009, if the firm had declared and paid a $10,000 cash dividend on December 31, 2009? Provide the journal entry for this cash dividend.
2. How much would Lance have reported for total assets and retained earnings on December 31, 2009, if the firm had issued a 10 percent stock dividend on December 31, 2009? Provide the journal entry for this stock dividend.
3. How much would Lance have reported for total assets and retained earnings on December 31, 2009, if the firm had effected a 2-for-1 stock split on December 31, 2009? Is a journal entry needed to record the stock split? Why or why not?